Do you really need rideshare insurance?

What could happen if you don’t have rideshare insurance?

 

Insurance for Ridesharing
Upset Lyft driver After Traffic Accident

 

It may seem like an okay idea to put off looking into rideshare insurance.  Maybe you’re a good driver and besides Uber and Lyft have insurance don’t they? Why would you want to pay more money for a rideshare endorsement or take the chance of getting canceled if your insurance company doesn’t offer rideshare insurance? Another driver on youtube said we didn’t need it. What’s the truth?

It’s an okay idea until you have an accident and have to think about it again. Then it might be too late. The Uber driver on youtube giving free insurance advice isn’t an insurance professional. It’s probably not a good idea to trust his advice…

It’s estimated that over 60% of rideshare drivers don’t have rideshare insurance.

Without a rideshare insurance policy or a rideshare endorsement, you’ll have coverage Gaps…

The entire time your app is on, your personal auto policy is suspended. Your TNC Lyft, Uber, etc., does provide coverage, but only for the period of time between accepting the passenger and dropping off the passenger (before accepting a passenger, some TNCs may provide limited liability coverage only). When you don’t have a passenger – you have no coverage for your vehicle and any damages or injuries you may sustain.

RideSharing Coverage steps in to cover you between passengers, effectively closing the gap.

Some things to consider…

Huge deductibles – Lyft has a $2500 deductible.  Uber has a $1000 deductible.  Some rideshare policies will cover the deductible gaps as well.  If for example, you have a $500 deductible on your policy that’s what you’d have with the rideshare endorsement – not $2500 or whatever.  You’ll want to ask your agent as some insurers will cover this gap and some insurers won’t cover it. A rideshare endorsement covering this gap could seem like a real bargain at claim time.

Loss of use… Let’s say you have an accident while heading to your hotspot and your vehicle is damaged. It needs extensive repair and it could take weeks to get it back on the road. You’re likely going to be out of pocket for deductibles you also won’t be able to drive or earn if that’s your only vehicle.

Ride-sharing coverage and gaps….ProgressiveRideshareInsurance

MN state law requires rideshare drivers to carry a minimum of 50/100/30 liability limits.  If you are carrying the state minimum of 30/60/10 you won’t be compliant.

Per vehicle/per occurrence/property damage

Check your auto insurance policy

Even though you have an auto insurance policy, it might not provide coverage while you are working for a TNC – Lyft, Uber, etc., Look at the exclusions in your policy.  Most personal auto insurance policies have exclusions for when a vehicle is used “in connection with a transportation network company,” “as a public or livery conveyance,” or “to carry persons or property for a charge.” Many applications specifically ask “Are any vehicles used for rideshare?”

Also, look at the terms and conditions of the policy. Using your car for business purposes may be in violation and cause your policy to be canceled.

Do you really need rideshare insurance?  Yes!

Is it possible to pay lower rates with a rideshare endorsement than you’re currently paying? Yes! A driver just recently cut his insurance bill in half and has better coverage.

There are tips and tricks to get better rates like…

  • Bundling all your insurance to get the multi-policy discounts
  • Some companies have lower rates than others in certain areas – so check other companies
  • Carrying higher liability limits could get you a better quote – people looking to save on insurance typically carry lower limits of liability and it actually costs them more.
  • Get an advance quote or early bird quote at least two weeks in advance of your current policy expiration.  Most companies will give you a discount.
  • Use an independent agent or agency that represents more than one company and understands rideshare insurance.  It will save you time.
  • Want more tips?  Call 612.460.7796 or go online here…

Minneapolis Progressive Insurance

 

 

 

Hackers Hit Another Business: Is your Business Next?

The cyber threat against local business is increasing as attacks skyrocket. It seems like every other day we hear about another business being hit. These are usually large business. However, it’s not merely huge retailers, like Dairy Queen, House Depot and also Target, getting hacked. Simply ask Kevin Stecko, the owner of specialty Tee shirts maker 80sTees. com. In January he was notified by Discover that cardholders utilizing his site had experienced questionable purchases on their accounts. The firm immediately stopped gathering charge card information, generated a forensic examiner as well as called the Trick Solution.

This might be the greatest threat to your business and…Your current policy likely doesn’t cover cyber liability!

There are only two types of companies. Those that have been hacked and those that will be.”

— Robert Mueller, FBI Director, 2012

-FBI has given Cyber-Crime the third highest priority, behind terrorism and counterintelligence.

-Small and medium-sized businesses (SMBs) are a key target for attackers, and 2013 proved no exception to the trend. In 2013, SMBs collectively made up more than half of all targeted attacks at 61 percent – up from 50 percent in 2012. This is per Symantec.

-We have seen a shift in attached from “thrill seeking” hackers to organized criminal organizations where their job is to locate targets and hack them.

-Increasing amount of digital data = rising opportunities for criminal activity: International Data Corporation (IDC) anticipates exponential growth in the digital universe (WiFi networks, mobile devices, shared databases, other).

 

Cyber Threats InsuranceTypical causes of a data breach. Hacker is the largest but you can also see that many of the things can’t be prevented by a firewall or antivirus software – lost laptop, rogue employee, staff mistake for example….

There are the top five areas where we are seeing losses occur.
-Network security – These are different kinds of viruses that can get into your systems when an employee clicks on a link for example. Example – the email from someone in Nigeria that you’ve won money. Once you click the link, a virus is introduced into your network.

Employee Mistakes – Lost paper files and lost laptop for example.

Denial of Service attack – Attempt to make a network resource unavailable to its intended users.

-Social Media – Media Liability portion of the Cyber policy. Phishing – Attempting to acquire the personal information of someone by posing as a legitimate source. Spear Phishing or Social Engineering (same concept)– Targeting someone particular (CEO of a company for example).

-Hactivisim – Political activist group. A group has some kind of an issue with the politics of an organization so they attempt to infiltrate their systems.

-Cloud computing – Renting of storage space from a third party. Allows companies to access their data from anywhere. Of course this has become a big target from hackers. Companies who run these services generally do a good job of protecting information but still it is a target for criminals to potentially access large amounts of data. Reviewing of contracts is encouraged for your clients. Some have hold harmless language so they don’t take on any liability with a hack.

-A new trend that’s small companies is “ransomware” — software that locks up a computer and forces the user to pay the criminals a fee to unlock it. A similar scam is “scareware,” in which attackers pose as software security firms, warning users that their computer is compromised and prompting them to click to a malicious websites for repairs.

TJ Maxx.

Also have seen earnings and stock prices affected as a result of the bad press.

This should be a real concern for any business.  The good news is there is insurance available.  In most instances it’s very affordable.  If you haven’t had a proper review of your insurance – now would be a good time.  It’s possible to not only get better coverage and lower your costs when you seek out an insurance specialists and not just a quote.

Businesses spend much time and money hiring the right employee – but, little if no time interviewing agents.  We encourage you to call the Insurance Specialists Team and talk with a commercial/tech insurance specialist.  It will be time well spent.  They’ll let you know if you are covered for cyber liability – odds are you’re not covered.

Do I Need a Personal Umbrella Policy?

Most people – whether they need one or not – are unsure what a personal umbrella policy is or what it covers. We will  offer a brief explanation of a personal umbrella policy and how it may benefit and protect you financially.

Umbrella insurance Minneapolis

When you’re outside and there is a light rain or breeze you generally don’t need or want an umbrella. However, if it is pouring heavy rain with severe winds, you definitely take your umbrella or wish you had taken it. An umbrella insurance policy works much the same way.
Personal umbrella insurance provides extra protection or limits above the liability insurance you currently have. Just as an umbrella protects you from heavy rain, an umbrella insurance policy protects you from losing the entirety of your wealth and assets in the event of a claim. Umbrella insurance can provide limits above your personal auto and home policies.

Most insurers will require a minimum of 250/500 or 300 combined single limit or a $500,000 single limit.  The umbrella will be cover above those limits.  Most often if you can purchase from your current insurer an umbrella is very affordable

Here is an example: Jane Doe – Smith falls asleep while driving and hits a van with a family inside. The accident results in $600,000 of medical bills, but Jane Doe – Smith’s auto policy has a $500,000 limit. Fortunately, She also has a $500,000 umbrella policy, and the additional $100,000 would be covered under the umbrella policy
It’s true that a personal umbrella may not be for everyone, but if you’re building financial resources for your future, are a professional, own your home, boat or recreation vehicle, you should consider an umbrella insurance policy. Having assets to lose makes you a target for attorneys and lawsuits – unfortunately.  The added protection of an umbrella insurance policy is coverage no one should go without.

You should review your insurance periodically to ensure there are no gaps and that you are properly protected if something should happen.  It doesn’t make sense to work hard all your life to have it taken away by some unfortunate circumstance.  A solid financial plan should begin with an insurance review.
Umbrella insurance is generally very affordable – probably around $100-300 a year avg.

Please call the Minneapolis Insurance Team and allow us to give you a quote! 612.460.7796